The National Payments Corporation of India (NPCI) has yet again added a new feature to the Unified Payments Interface (UPI) platform. The new feature, UPI Circle-Delegate Payments, will help primary holders of UPI accounts to delegate transaction rights to secondary users.
The main goal is to create a common platform that simplifies and enhances transactions between individuals who are familiar with each other but may not necessarily have their own bank accounts. This platform will serve as a means to facilitate seamless and secure financial exchanges among trusted parties such as family members, friends, employees, and acquaintances.
This mechanism encompasses two key forms of delegation:
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Full Delegation: In this scenario, the primary user bestows upon the secondary user the power to both initiate and execute transactions within specified spending thresholds. The secondary user is not required to seek additional approval to successfully carry out these transactions.
Partial Delegation: Under this arrangement, the secondary user possesses the capability to kickstart transactions, but the primary user is mandated to authenticate and finalise the payment via their UPI PIN. This model ensures heightened oversight for significant transactions while still allowing for flexibility in managing routine payments.
“For linking, the primary user shall scan the QR code/enter UPI ID followed by a selection of contact numbers from the contact list. In the later phase, the primary user shall be able to link the secondary user in lieu of a QR code scan by selecting of contact number from the contact list only, details to be notified. Manual entry of mobile number shall be restricted,” NPCI stated.
It added a primary user can delegate up to five secondary users and secondary users can accept delegation from only one prime user.
“Members shall ensure limits control to be available for the primary user to set usage controls over their secondary users. Members shall ensure that the primary user has visibility of transactions performed by the secondary user for both full and partial delegation,” says NPCI.
4. Key guidelines
Key guidelines laid out by NPCI for UPI apps and Payment Service Providers (PSPs)
In the realm of user experience, both primary and secondary users are set to undergo distinct user journeys within their preferred UPI applications, enabling them to uphold their preferences and exercise control over their transactions.
To bolster security measures, every secondary user is mandated to employ either passcodes or biometric validations like fingerprint or facial recognition to fortify the integrity of all financial transactions.
Regarding the linking process, primary users possess the capability to link secondary users through methods such as scanning a QR code or inputting the secondary user’s UPI ID. This process is further augmented by choosing the secondary user’s contact directly from the primary user’s phone.
Sole contact selection will be permissible while manual insertion of mobile numbers will be restricted, a strategic move aimed at heightening the security framework.
When it comes to delegation limits, a primary user is empowered to bestow payment authorization onto a maximum of five secondary users. Conversely, a secondary user is only eligible to accept delegation from a single primary user, ensuring transparency and averting any potential conflicts arising from overlapping responsibilities.
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5. Beneficiaries
The UPI Circle feature can be useful for individuals who may lack the capacity or inclination to oversee their digital transactions, yet still seek to utilise financial services.
UPI delegate payments offer a convenient and inclusive solution for customers, enabling dependents such as minors or elderly parents to manage expenses without the necessity of individual accounts.
Furthermore, employees are granted the ability to conduct business transactions under the supervision of their employers, fostering empowerment and efficiency within the workplace.
“Through this development, two family members can now use one bank account for making UPI payments. This initiative will further strengthen and enhance UPI payments especially in rural areas, where financial literacy is less, and one bank account is used by one family. This mechanism will enhance user convenience by ensuring effective control through the usage limit authorisation feature. This will also empower consumer confidence with easy, safe, and hassle-free financial transactions, thereby contributing towards a digitally empowered nation,” said Rahul Jain – CFO, NTT DATA Payment Services India.
